Shipping Industry to See 50% Drop in New Orders for Liquid Petroleum Gas Tankers to 2013

LONDON--(BUSINESS WIRE)--A report just published by Fairplay shows new orders for liquid petroleum gas (LPG) fleet tankers currently forecast at 191 to the end of 2013, which is 50 percent less than the previous five years or 40 percent if measured in cubic metres (m3)

“The LPG market will by this slower fleet growth be better positioned than most other shipping markets when the GDP growth resumes to previous levels, particularly in Asia,” explained Niklas Bengtsson, senior consultant for Fairplay Market Forecast. “China and South Korean dominate the order book for tankers over the next five years, holding 30 percent of the orders between them. Europe accounts for only 15 percent.“

This is expected as China will continue to increase its share of world exports with the Chinese state buying raw materials for stockpiling. The Chinese State Reserve Bureau, which manages the government stockpile, has bought copper, aluminium, zinc, indium and titanium in recent months.

The monthly Shipbuilding Market Forecast for February 2010 examines the oil, chemical, LPG and LNG tanker markets. It provides a review of the global business environment demand for seagoing transport, market conditions and capacity utilization for these classes of vessels, and gives a detailed five-year shipbuilding forecast, including new orders, deliveries and demolitions.

The report by Fairplay forecasts that the LPG tanker fleet will increase by a meager seven percent over the next four years. In 2008, the fleet reached historic highs, but the Shipping Market Forecast by Fairplay forecasts that deliveries for 2009 through 2013 will stand at 5.2M m3 which is a 16 percent drop from 2008 deliveries.

The forecast for removals from the worldwide tanker fleet in the period 2009 through 2013 is 152 ships, an increase of 70 percent compared to the previous five-year period, but as these are mostly relatively small ships it is only 40 percent of the capacity if measured in m3.

At the beginning of January 2010 the worldwide LNG fleet stood at 340 carriers which is a capacity of 47.7M m3. At this time 52 vessels were on order which is 40 less than the same time last year.

Fairplay is an IHS Inc. (NYSE: IHS) company.

To interview one of Fairplay’s analysts or editors or to see a full copy of the report, please contact Mandy Castle, senior manager public relations IHS or Niklas Bengtsson, Senior Consultant Fairplay Market Forecast.

Fairplay’s Shipbuilding Market Forecast is a monthly newsletter from Fairplay Research. Newbuilding orders are forecast for the coming five years, as well as expected deliveries and scrapping.

About Lloyd’s Register-Fairplay (www.lrfairplay.com)

Lloyd's Register-Fairplay, an IHS Inc. company (NYSE: IHS, www.ihs.com), is the preeminent provider of comprehensive details of tankers, cargo, container and passenger ships around the world. The company provides a complete range of products and services to assist the world's maritime community, as well as research and consultancy services critical to the shipping industry. Lloyd's Register-Fairplay products and services are unique to the industry in meeting international demand for information requirements on ships, companies, ports, real-time vessel movements and related news, and the company is the sole global authority for the IMO ship and company numbering scheme. Lloyd’s Register-Fairplay was formed in July 2001 from a merger of Lloyd's Register's Maritime Information Publishing Group and Prime Publications Ltd, bringing together the two largest maritime database providers. In March 2008, Prime Publications Ltd was acquired by IHS, and in June 2009, IHS acquired Lloyd's Register's share, making Lloyd's Register - Fairplay a wholly owned company of IHS.

About IHS (www.ihs.com)

IHS (NYSE: IHS) is a leading global source of critical information and insight dedicated to providing the most complete and trusted information and expertise. IHS product and service solutions span four areas of information that encompass the most important concerns facing global business today: Energy, Product Lifecycle, Security, and Environment, all supported by Macroeconomics. By focusing on our customers first, IHS enables innovative and successful decision-making for customers ranging from governments and multinational companies to smaller companies and technical professionals in more than 180 countries. IHS has been in business since 1959 and employs about 4,100 people in 28 countries.

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